BALTIMORE, Feb. 20 /PRNewswire/ -- Provident Bankshares (Nasdaq: PBKS),
parent company of Provident Bank, the second largest independent commercial
bank headquartered in Maryland, announced today that it has reached an
agreement to buy back all of the 1,407,157 PBKS shares held by Mid-Atlantic
Investors and its affiliates. The Shares will be repurchased at $ 23.8568387
per share, representing the weighted average sale price per share for the day
ending Friday, February 16, 2001.
This transaction accelerates the completion of a substantial portion of
the Company's share repurchase program within the price range approved by its
Board of Directors in December 2000. The repurchase is expected to be
accretive to both earnings per share and return on common equity for 2001.
As is customary, Mid-Atlantic and its affiliates have agreed to refrain
from taking certain actions with respect to Provident, including making
shareholder proposals.
"We believe the increased earnings per share and return on common equity
resulting from our share repurchase will enhance the value of Provident to our
stockholders," said Peter M. Martin, Provident Bankshares Chairman and CEO.
"Our Board and management remain committed to that goal. We will continue to
implement our successful corporate strategies, grow our business, improve our
financial performance and evaluate all viable strategic alternatives."
Provident Bankshares Corporation is the holding company for Provident
Bank, the second largest independent commercial bank headquartered in
Maryland. With more than $5.5 billion in assets, Provident serves individuals
and businesses in the dynamic Baltimore-Washington corridor through a full
range of financial services and a network of 98 offices in Maryland, Northern
Virginia and Southern York County, PA. Provident Bank also offers related
financial services through its wholly owned subsidiaries. Mutual funds,
annuities and insurance products are available through Provident Investment
Center and leases through Court Square Leasing and Provident Lease Corp.
Visit Provident on the web at http://www.provbank.com .
Statements contained in this press release that are not historical facts
are forward-looking statements as the term is defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties which could cause actual results to differ
materially from those currently anticipated due to a number of factors, which
include, but are not limited to, factors discussed in documents filed by the
Company with the Securities and Exchange Commission from time to time.
SOURCE Provident Bankshares Corporation
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Related links:
http://www.provbank.com
Company News On-Call:
http://www.prnewswire.com/comp/721938.html or fax,
800-758-5804, ext. 721938
CONTACT:
Media, Lillian Kilroy, 410-277-2833, or
Investors, Ellen Grossman, 410-277-2889, both of Provident
Bankshares Corporation
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